Is Your Homeowners Association Filing Required Tax Returns?

Homeowners association directors are responsible for the proper management of their homeowners association irrespective of whether the association has retained a professional property manager to assist in the management of the association. The management responsibilities of an association’s directors includes the filing of required HOA tax returns with state and federal taxing authorities. Notwithstanding this responsibility, unknowing volunteer directors are often under the mistaken belief that, because their homeowners association is a nonprofit corporation, it is exempt from the responsibility for paying taxes and filing HOA tax returns.